30 July 2013

Steve DunnComptroller

Space and Naval Warfare Systems Command

SPAWARBudget Outlook and Trends

Statement A: Approved for public release, distribution is unlimited (30 JULY 2013)

Presented to:NDIA San Diego C4I Industry Day

2

30 35 36 37 37 38 40 42 44 45 46 44 45 46 47 48 49

3338 43 35 36 37 40 42 42 46 46 50 49 50 51 51 52

3944

4748 54 52

5964 69 69 65 63 62 67 66 67 69

10

513

17 25

26 1718

2016 14

0

20

40

60

80

100

120

140

160

180

FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18MilPers O&M Investment OCO ARRA SMOSF

2

FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18$101.8 $126.4 $123.5 $133.6 $144.7 $151.7 $165.2 $166.5 $173.2 $176.8 $174.7 $174.1

$101.8 $116.8 $118.4 $120.9 $127.9 $127.2 $139.5 $148.1 $155.3 $156.2 $158.4 $160.0 $155.8 $163.1 $163.6 $166.3 $169.8

Bill

ions

of D

olla

rs

Numbers may not add due to rounding

Department of the Navy Topline FY 2002-2018

(FY 2009 $1B TY)

Total Funding (TY)

Baseline Funding (TY)

Reflects P.L. 113-6

3

Trends in Appropriated Dollars President’s Budget 11 – 14*

*Note: PB14 has been submitted to Congress but has not yet been appropriated

Operations & Maintenance (OMN) – 26% of Total Appropriated

Military Personnel (MPN) – 17% of Total

Aircraft Procurement (APN) – 11% of Total

Research & Development (RDTEN – 10%

Shipbuilding & Conversion (SCN) – 9%

Military Personnel Marine Corp (MPMC) – 8%

Operations & Maint Marine Corp (OMMC) – 5%

Acquisition Commands drive $65B (65%) of DoN FY14 TOA Excludes Marine Corps and BUPERS

Other Procurement (OPN) – 4%

4

SPAWAR Appropriation Planned Values (2011-2013) & FY14 PB

SPAWAR transitioning focused to Modernization and Sustainment (OPN and OMN) R&D is declining year over year

RDT&E has decreased a total of 53% from 2011-13

5

SPAWAR Portfolio Investment 2011-2013

Business IT

Business IT

Communications

Business IT

SpaceUNSELECTED

6

SPAWAR Historical Workload Drivers by Function 2011-2013 Top 10

Prime Mission Product (PMP) Development is down 55% (FY11-13), which coincides with the downward trend in total RDT&E investment over the same period

Prime Mission Product (Production)

Prime Mission Product (Development)

7

CIVPERS/CSS Reductions POM 10 – POM 14

8

Reduces DoN O&M accounts by $4.4 Billion Significant Training, Readiness, and Maintenance impacts continue

Reduces investment accounts by $6.3 Billion Detailed review ongoing Several programs will require immediate fixes May result in quantity reductions

DON FY 2013 Sequestration

FY13 Sequestration 7.8% reduction to all accounts - except Military Personnel

DON impact ~$10.7 billion

9

FY14 - 18 DoN Sequestration Overview

10% reduction to DON: $15.6B $14B Navy $1.3B USMC $0.3B MILCON/Family Housing

All appropriations cut 14.1% (MILPERS fenced) FY14 starts with a +$261M “bow wave” from FY13 sequestration

Appropriation PB14 FY14 10% Cut FY14 14% Cut

MILPERS 45 (5) 0O&M 48 (5) (7)Procurement 44 (4) (6)R&D 16 (2) (2)Construction 2 (0.2) (0.3)DON Total 156 (15.6) (15.6)

FY14 FY15 FY16 FY17 FY18 TotalBCA 552 566 577 590 603 2,888

BCA w/SEQ(-$53.9B/Yr) 498 512 523 536 549 2,618

PB14 (POTUS) 552 566 577 586 595 2,876BCA Delta to POTUS 0 0 0 (4) (8) (12)

10

SPAWAR FY12 Dollars to Industry

$5.4B 58%

$0.2B 2%

$7.8B 84%

CONTRACTS WITH PRIVATE INDUSTRY

$3.3B 35%

$4.4B $4.9B

FUNDS APPROPRIATED TO TEAM SPAWAR

OTHERSOURCES

$9.3B

To SSC’s

Direct to Industry

SPAWAR Total

To HQ, PEO’s &SSFALabor & Travel

$4.5 B (TOTAL)

SPAWAR System Centers (SSCs)

$4.5B

SPAWAR Chief Engineer 30 July 2013

Statement A: Approved for public release, distribution is unlimited (30 JULY 2013)

RDML Jim RodmanChief Engineer,

Space and Naval Warfare Systems Command

Presented to:NDIA San Diego C4I Industry Day

13

Complex IT architectures evolved over time; mostly ad-hoc system-by-system designs & configuration management

Most IT interfaces mission specific & governed by non-standard PM-PM agreements (with some documentation)

Each system individually responsible for its own IA

No overarching platform network architecture that minimizes Cyber attack surface & invokes Defense-in-Depth IA

What Does IT On Platforms Look Like Today?

Platform IT is Highly Variable, Hard to Maintain & Hard to Defend

Platform Network

14

Implementing Information Technology Technical Authority (IT TA)

Platform Networks Tomorrow(notional)

IT TA applies to all the interfaces between clearly defined zonesSPAWAR responsible for requirements and architectures, SYSCOMS responsible for implementationSPAWAR TA applies to all interfaces between SPAWAR systems & non-SPAWAR systems & all interfaces to the GIGRequires enterprise & platform target architectures with interface specifications, standards & profiles

IA TA applies across all zonesRequires IA Defense-in-Depth architectures & tailored IA requirements

For IT TA & IA TA GovernanceSPAWAR coordinates all products & processes through a Cross-SYSCOM Technical Authority Board (TAB)

Platform Networks Today

Interfacesorganized to clearly delineate SYSCOMresponsibilitiesby zones (layers & enclaves)

15

JIE & IT TA

JIE Provides Global IT Standards, Policy, Procedures, Guidance & Strategy

IT TA Provides Naval IT Standards, Policy, Procedures, Guidance & Strategy

IT TA

JIE

16

Small Business

5.0 is committed to supporting small businesses57% of 5.0 contracts are with small businesses (4 of 7)Existing 5.0 small business contracts:

Experimentation & Systems Engineering supportModeling & Simulation, Analytical workHuman Systems Interface/Engineering supportTest & Evaluation support & Info Assurance Certification support

Potential Future OpportunitiesSystem-of-Systems Engineering & Systems Engineering supportLook for details in future SPAWAR Procurement Forecasts

30 July 2013

Mark McLainDeputy, Office of Small Business Programs

Space and Naval Warfare Systems Command

SPAWAR Office of Small Business Programs (OSBP)

Statement A: Approved for public release, distribution is unlimited (30 JULY 2013)

Presented to:NDIA San Diego C4I Industry Day

18

AgendaSmall Business AccomplishmentsInitiatives/Focus Areas Doing Business with SPAWAR

Federal Business Opportunities e-Commerce Central websiteSEAPORTThings to rememberFuture procurement opportunities

Resources and POC’s Questions?

FY13 YTD as of June 26, 2013Small Business Statistics - Side-Side Comparison

7/30/2013 19

Target Result

SBOverall 20.25% 20.01%

SDB 6.60% 7.70%

SDVOSB 1.70% 2.52%

WOSB 3.30% 4.46%

HUBZone .90% 1.72%

TargetResult

SBOverall21%20.03%

SDB7.85%8.70%

SDVOSB2%2.60%

WOSB4%5.44%

HUBZone1.15%1.67%

FY12 FY13

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

FY12 FY13 FY13TARGETS

Trend Comparison for FY12 and FY13 Targets

Team SPAWAR Small Business Overall

SmallDisadvantaged

Service Disabled Veteran Owned Women Owned HUBZone

FY 12 Targets | Achievements 20.25%|22.98% 6.60% | 8.96% 1.70% | 2.36% 3.30% | 5.14% .90% | 1.76%FY13 Targets 21.00% 7.85% 2.00% 4.00% 1.15%

FY13 Achievements 20.03% 8.70% 2.60% 5.44% 1.67%

HQ Goal Achieved ObligatedSmall Business 10.70% 9.05% $127,900,703.42

Small Disadvantaged Business 3.52% 4.36% $61,649,212.168(a) Procedure n/a 0.65% $9,236,160.58

Veteran Owned Small Business n/a 3.96% $55,886,276.37Service Disabled Veteran Owned Small Business 1.37% 3.08% $43,514,577.46

Women Owned Small Business 2.44% 2.26% $31,860,428.41Certified HUBZone Small Business .81% 0.35% $4,993,064.00

SSC-PAC Goal Achieved ObligatedSmall Business 26.00% 26.06% $126,567,274.14

Small Disadvantaged Business 6.00% 7.25% $35,224,228.838(a) Procedure n/a 4.59% $22,295,736.05

Veteran Owned Small Business n/a 4.79% $23,252,598.53Service Disabled Veteran Owned Small Business 1.50% 2.63% $12,789,096.05

Women Owned Small Business 3.50% 2.98% $14,468,539.82Certified HUBZone Small Business 1.50% 2.71% $13,154,445.33

SSC-LANT Goal Achieved ObligatedSmall Business 29.81% 30.25% $371,933,126.68

Small Disadvantaged Business 12.18% 14.26% $175,345,385.42 8(a) Procedure n/a 5.20% $63,987,462.54

Veteran Owned Small Business n/a 5.80% $71,252,029.89 Service Disabled Veteran Owned Small Business 2.43% 2.02% $24,867,496.30

Women Owned Small Business 4.06% 10.07% $123,805,358.81 Certified HUBZone Small Business 1.48% 2.77% $34,044,950.66

Distribution of Prime Small Business DollarsFY13 as of June 26, 2013

22

Top 10 NAICS Awarded by Dollars - FY12

NAICSSB Size

Standardsin $M

SB SizeStandards in #

EmployeesDescription Action Obligated

541330 $35.5M N/A Engineering Services $3,320,517,767

334220 N/A 750 Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing $925,619,688

541519 $25.5M N/A Other Computer Related Services $479,806,388

541712 N/A 500 Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology) $261,388,113

517110 N/A 1,500 Wired Telecommunications Carriers $251,447,241

334290 N/A 750 Other Communications Equipment Manufacturing $232,311,299

517410 $15M N/A Satellite Telecommunications $213,055,614

541512 $25.5M N/A Computer Systems Design Services $208,793,057

541511 $25.5M N/A Custom Computer Programming Services $160,451,610

334511 N/A 750 Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing $93,666,280

FY12/13 Successes and Challenges

SPAWAR Leadership

Small Business Industry Partners

PEO’s, Contracts, PM’s,

NationalCompetency

Leads

SBA PCR, PTAC, SDADT,

etc

Office of Small BusinessPrograms

Improvement through partnerships and building trusted relationships

Successes – steady improvement in SB accomplishments (attributed but not limited to):SPAWAR working groups (market research, WOSB with members from Industry, Contracts, SBA, OSBP) OSBP Industry engagement such as roundtable meetings (Leadership, Contracts, Program Executive Office’s, Program Manager’s, both small and large businesses)Three year forecast of procurement opportunities Ongoing outreach with industry and collaboration with other buying commands, SBA, PTAC, SDADT, etc.Strengthening awareness and accountability for SB goal achievement

Challenges – Impact of sequestration and the continuing resolution

Current OSBP Initiatives/Focus areas

ASN RD&A Memo of 13 December 2012 Subj: Meeting Small Business (SB) Goals in FY13 requires quarterly status reports on small business progressOngoing communication/training on plan to meet SB goals and updated SPAWAR SB Instruction

Subcontract monitoring/reporting requirements Reporting requirements for both large business (subcontracting accomplishments) and small business concerns (limitations on subcontracting)

OSBP InitiativesMarket research working group

Members - OSBP, contracting personnel from across SPAWAR and industry (small and large business) representatives. Outcome - standardized process by utilizing best practices, developing templates and corresponding instructions for the types of procurements typically used at SPAWAR. Focus on posting timeframes, description of the requirement to promote competition, identify potential opportunities for small businesses and adequately define what vendors are required to provide in order to determine their qualifications & capability (including breadth and depth) in performing the work. The working group has completed a template for services that is required for all SPAWAR services efforts including SeaPort-e task orders.

OSBP Initiatives continued….Market research working group next steps

Currently working on market research process for task orders on MACs to be followed by commodities and actions under the simplified acquisition threshold.

Market research is required (the extent will vary depending on such factors as urgency, estimated dollar value, complexity, and past experience)Task orders on SPAWAR awarded MACs that are not set-aside for SB’s will require review by OSBP when there are two or more SB primes

2727

How To Identify Opportunities Within DOD

Posting of contract actions:

Federal Business Opportunities (FedBizOpps) is a web-based system for posting solicitations and other procurement-related documents to the Internet. FedBizOpps was designated by the Federal Acquisition Regulation as the mandatory "government wide point of entry for the posting government business opportunities greater than $25,000.”

For more information visit:

www.fbo.gov

2828

On the SPAWAR website (www.spawar.navy.mil) click on “For Industry Partners” which will direct you to our e-commerce site. A list of our future opportunities, open solicitations, and contract awards is available for the SPAWAR Headquarters, as well as for SSC Atlantic and SSC Pacific.

How To Locate Information on SPAWAR Opportunities

29

SPAWAR e-Commerce Website

29https://e-commerce.sscno.nmci.navy.mil

30

How To Locate a Specific Contract Opportunity

7/30/2013 30

31

NAVSEA Multiple Award Contract (MAC) IDIQ vehicle with CPFF and FFP pricingSeaPort-e – The Navy’s electronic platform for acquiring support services in 22 functional areasIndividual task orders competed in one of seven geographic zones

No sole source orders2,844 prime contractors (rolling admissions currently closed)

nearly 88% of its contract–holders are small businessesCompetitive 8(a) Set-asides

SPAWAR vehicle of choice for servicesCaps on pass-through costs, labor escalation, and fee/profitStreamlined evaluation processWeb portal for electronic commerce: www.seaport.navy.mil/

If You Remember Nothing Else…Read the Sources Sought, RFI or solicitation whichever is applicable – all of it (even the boring parts)Reread the document - all of it - againIf you have any questions - ask the designated POC BEFORE the Sources Sought, RFI or solicitation closesWhen preparing your response – Follow the instructions to ensure it is compliant with the information requested Have someone (not the preparer) check the response against the sources sought, RFI or solicitation requirementsSubmit your response ON TIME!

SPAWAR Website Homepagewww.public.navy.mil/spawar

7/30/2013 33

SPAWAR Office of Small Business Programs

May 2013 Three Year Acquisition Procurement Forecast

36

Team SPAWAR OSBP (HQ)Resources and Contact Information

Faye Esaias, Director for Small Business Programs(619) 524-7701; faye.esaias@navy.mil

Robert “Zack” Zaccaria, Deputy for Small Business (619) 524-7701; robert.zaccaria@navy.mil

Mark McLain, Deputy for Small Business (619) 524-7701; mark.mclain@navy.mil

Aubrey Lavitoria, Deputy for Small Business (619) 524-7701; aubrey.lavitoria@navy.mil

3737

Team SPAWAR OSBP (SSC PAC, LANT and NOLA) Resources and Contact Information

Dean Dickau, Deputy for Small Business for SSC Pacific Phone: (619) 553-4327 or email dean.dickau@navy.mil

Robin Rourk, Deputy for Small Business for SSC AtlanticPhone: (843) 218-5284 or email: robin.rourk@navy.mil

Timothy Wiand, Deputy for Small Business for SSC AtlanticPhone: (843) 218-5167or email: timothy.wiand@navy.mil

Ida Lirette, Deputy for Small Business for SSC New OrleansPhone: (504) 697-5599 or email: ida.lirette@navy.mil